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a) An auto-parts company of Australia wants to establish a plant outside Australia. The alternatives are Fiji, PNG, Samoa and NZ. Given its financial situation, the company is constrained to set up only one plant outside Australia. Assume that the setting-up costs and the operating costs of a plant in any of these four countries are the same. The marketing research department offers a projection that if the plant is set up in Fiji, PNG, Samoa or NZ, it will fetch a turnover (revenue) of $2.5 million, $2 million, $2.3 million and $2.8 million respectively. Of course, given these choices the company will opt to set up a plant in NZ. What is then its opportunity cost?
a) John is an economist working for Ministry of Tourism in Suva, earning $30,000 per year. There are, say, three alternative careers available for John. He can work for Reserve Bank or Ministry of Economy in Suva for $25,000 and $28,000 per year respectively. Still another alternative is that he can set up his own economic consultancy firm, expecting to make a profit of $27,500 a year for himself. What is John’s opportunity cost of working in Ministry of Tourism?
Briefly, discuss how economist test theoretical economic models?
Where q is quantity demand per week, p is the price per unit m is the average weekly income, ps is the price of a competing good and n is the population in millions. Given values are p=65, m=350, ps=60 and n= 24
1. Calculate the price elasticity of demand
2. Find out what would happen to(a) if n rose to 26
3.explain why this is inferior good
4.
Suppose the market demand and supply are described by the following information: Q = 200 - 2P + 4i and Q = - 50 + 3P (5)
Determine the equilibrium price and quantity of the above market when i=50.
b)
Plot a graph showing the above results.
c) Determine the equilibrium price and quantity of the above market when j=100.
Qd = Qs given the following equations: 400 - 2P + 4j = - 100 + 3P and 400+400+100 = 3P+2P calculate price and quantity.
a) Analyze the effect of a price ceiling in the market for wheat on equilibrium price and quantity. Will
and producer surpluses.
competitive market.
consumers / producers / both benefit because of this price ceiling? Explain using changes in consumer
technology affect market demand and/or supply, equilibrium price and equilibrium quantity in a
(b) How will a simultaneous increase in the price of substitute good and an improvement in production
#340153 on Dec 2023